From sneakers to startups: thoughts after the tide goes out
Originally written in Chinese. Translated with AI, reviewed by Gary. Read the Chinese original →
Today the sole of one of my pairs of Yeezys finally split open.
My connection with sneakers goes back to childhood. Influenced by Slam Dunk, I loved the Jordan 1. It wasn't just a shoe; it felt like a symbol carrying Jordan's never-give-up spirit.
When sneakers became money
From 2019 to 2022, the sneaker world suddenly changed. For the first time I discovered, to my shock, that "a hobby can turn into money".
A pair bought for RM600 on Nike's website could sell for RM1000 two weeks later. Platforms raised round after round of funding. StockX was valued at US$3.4 billion, and platforms like GOAT, Dewu and Nice were red hot. Collectors borrowed money to flip shoes. The market was as crazy as the stock market.
I got swept in too. The most expensive pair I ever bought was this Yeezy. A friend brought it back from the UK for me, for RM1200. Once I had it, I couldn't bear to wear it, and within a month it had gone up to RM2000.
Then came the Kanye West controversy, Adidas ended the partnership, and the Yeezy market collapsed overnight. The shoes ended up "worth nothing", and only then did I start wearing them myself. I wore them for three years, until they finally fell apart.
Only when the tide goes out
As Buffett said: only when the tide goes out do you find out who's been swimming naked.
Collecting sneakers is at heart a hobby. Bringing capital into it is fine, but speculation needs real caution. A hobby brings joy, but hype magnifies the risk.
In the past few years the market has cooled down, and young people have even started jokingly calling Nike and Adidas "old people's shoes". Three rising stars, On, Hoka and Salomon, took the chance to eat into the big players' share.
But think about it: if even Nike, with such a strong brand moat, can be shaken, then whether the new brands can last is worth continuing to watch.
What it says about starting a business
Looking back at the sneaker world, I think it's a lot like starting a business.
Following the hype might make quick money in the short term, but the risk is just as big. What really goes the distance is doing what you love and believe in, and waiting for the wind to come to you.